AMTD Group successfully completes Fenghui Leasing Co,. Ltd’s US$150mm 7.875% senior unsecured fixed rate guaranteed notes offering, precedent of PRC leasing company issuing bond in offshore market
On 3 August, AMTD acted as Joint Bookrunner on Fenghui Leasing Corp,. Ltd., (the “Company”)’s debut US$150mm Reg S 3yr bond offering (the “Transaction”).
Fenghui Leasing Co.,Ltd. (“Fenghui Leasing” or the “Company”) is one of the leading PRC financial leasing companies approved by State Administration of Taxation and Ministry of Commerce. The company started its leasing and financing business in Beijing in 2009 with registered capital RMB2.0 billion as of 31 December 2015. The Company specializes in providing customized financing solutions through financial leasing, aiming to achieve “multiple channel, multiple layer, multiple product” comprehensive services to customers in China. Fenghui Leasing has a diversified customer base across various industries including intelligent equipment and devices, healthcare, transportation, energy saving and environmental protection, social welfare, public utilities, clean energy and etc. The Company was the 9th largest domestic-funded financial leasing company in China and the 2nd largest in Beijing both in terms of registered capital.
Benefited from the low interest rate environment of global capital markets, the Asia high yield asset becomes more and more compelling among investors. As one of recent precious high-yield bond investment opportunities, the transaction has attracted strong attention and market demands from investors as well as a very high quality order book. It also represents the return of China offshore high yield bonds to global debt capital markets after RMB exchange rate adjustment and Brexit.
Moreover, this transaction would be an important milestone for private leasing enterprises to obtain offshore financing. Financial leasing enterprises under the jurisdiction by the Ministry of Commerce are relatively new issuers to international bond market. Leasing enterprises, of which this transaction not only rare to high-yield sector, but also the historically first transaction in the leasing industry. Therefore, this transaction was a breakthrough and a foundation for Chinese leasing enterprises to access the offshore bonds market.
Once again, AMTD acted as Joint Bookrunner, demonstrated its excellent execution and distribution capability, by contributing significant anchor orders in the Transaction. On the back of an orderbook that was multiple times over-subscribed, the Transaction printed with a 7.875% coupon and a 8.25% re-offer yield, 25bps tighter than the initial price guidance of 8.5% area. Institutional investors took around 70% of the transaction while private bank investors took around 30%. Asian investors also took lion share of the deal at over 90%.
AMTD remains very active in the international debt capital markets and successfully completed 9 transactions this year. AMTD successfully led China Minsheng Investment Corp,. Ltd’s Reg S US$500mm 3Y bond offering; a US$500mm bond offering for Zhongrong International Trust, one of the largest trust companies in the PRC; a US$300mm bond offering for Yunnan Provincial Investment, the largest comprehensive holding company in the Yunnan province; a debut US$180mm bond offering for Carnival Group, China’s only publicly listed operator of large-scale integrated tourism, hospitality and retail attraction; a US$362mm exchange offer and new 5-year bond offering for Sun Hung Kai & Co, the largest unlisted financial institutions in Hong Kong; Regal Hotels (78.HK)’s US$350mm bond offering HKD500mm bond issuance for Emperor International Holdings Limited, a famous Hong Kong listed real estate company; as well as AMTD Group’s debut US$110mm bond offering.
About Fenghui Leasing Co., Ltd.
Fenghui Leasing Co.,Ltd. (“Fenghui Leasing”) started its leasing and financing business in Beijing in 2009. Its registered capital was RMB2.0 billion. The Company specializes in providing customized financing solutions through financial leasing, entrusted loans and related financial advisory services to customers in China. Fenghui Leasing has a diversified customer base across various industries including intelligent equipment and devices, healthcare, transportation, energy saving and environmental protection, social welfare, public utilities, clean energy and etc. The Company was the 9th largest domestic-funded financial leasing company in China and the 2nd largest in Beijing.
